“Honeywell continues to execute well, as evidenced by our strong fourth quarter
finish and record free cash flow generation in 2009,” said Honeywell Chairman
and Chief Executive Officer Dave Cote. “Despite a challenging year, we
delivered on our financial commitments, while continuing to invest in new
products, geographic expansion, and key process initiatives. The benefits from
these investments give us strong momentum entering 2010. We introduced more
than 600 new products last year and expanded our footprint in key emerging
regions. While we continue to plan conservatively for 2010, we are encouraged
by the improving order trends and stabilization in many of our end markets. Our
focus on having great positions in good industries combined with our leading
technologies linked to key mega-trends such as energy efficiency, safety, and
security will drive growth at Honeywell as the economy recovers.”

Aerospace• Sales were down 18% compared with the fourth quarter of 2008, primarily
due to lower volumes in the commercial aerospace aftermarket, original
equipment sales to Business and General Aviation and Defense sales, partially
offset by higher original equipment sales to large air transports and logistics
services.
• Segment profit was down 20% and segment margin decreased 60 bps to 18.6%,
primarily due to volume declines, partially offset by cost savings initiatives
and benefits from prior repositioning actions.
• Honeywell Technology Solutions Inc. (HTSI) won a $257 million contract from
the Army Sustainment Command to provide logistics services for U.S. Army
personnel in Iraq. For the next five years, Honeywell will provide logistics
planning, supply services, maintenance management, and management of housing,
facilities, property, and construction activities at 11 locations in Iraq for
the 402nd Army Field Support Brigade.
• Honeywell’s Enhanced Ground Proximity Warning System (EGPWS) for helicopters
received technical design and production approval from the Federal Aviation
Administration (FAA).
• Honeywell will provide the fuel-efficient 131-9A Auxiliary Power Unit (APU)
to Air Arabia, the first and leading low-cost carrier in the Middle East and
North Africa, in a deal worth $36 million. The Honeywell 131-9A APUs will be
included on new A320 purchases through 2016.
• The U.S. Army will purchase additional Honeywell T55 engines and fielding
kits for Chinook helicopters. More than 5,300 T55 engines have been built and
the fleet has accumulated more than seven million hours of global
operation.

Automation and Control Solutions• Sales were down 4%, compared with the fourth quarter of 2008, resulting
from slower economic growth in the U.S. and Europe, partially offset by the
favorable impact of foreign exchange, continued growth in emerging regions, and
the net favorable impact from acquisitions and divestitures.
• Segment profit was up 5% and segment margins increased 130 bps to 14.7%
driven by cost savings initiatives and benefits from prior repositioning
actions, more than offsetting the unfavorable impact of lower volumes and
inflation.
• Building Solutions secured a $79 million renewable energy and building
retrofit program with Eastern Illinois University. It combines energy-efficient
facility upgrades with one of the largest biomass-fueled heating plants on a
university campus and will help to reduce maintenance, improve infrastructure,
and save approximately $140 million in energy and operating costs over the next
two decades.
• Honeywell was awarded an $11.4 million grant from the Department of Energy
(DOE) as part of the largest single energy grid modernization investment in
U.S. history. The grant was awarded under the American Recovery and
Reinvestment Act (ARRA) and Honeywell was one of only four non-utility
companies to receive funding. Honeywell will use the grant to support a
critical peak pricing response program to help commercial and industrial
customers of Southern California Edison (SCE) automatically implement energy
management strategies to reduce costs and improve efficiency. Honeywell has won
an additional $82 million as a result of DOE grants over the past 18 months to
fund efforts across its businesses in renewable energy, electric batteries, and
biofuels.
• Scanning and Mobility signed a multi-year agreement with UPS to deploy nearly
100,000 mobile computers – making it one of the largest wins in the AIDC
industry. UPS will replace its entire worldwide fleet of mobile computers with
Honeywell products.
• Process Solutions introduced a set of solutions, including a facility-wide
greenhouse gas (GHG) emissions reporting dashboard, that can help U.S. process
manufacturers comply with a new Environmental Protection Agency (EPA)
regulation requiring specific facilities to track and report GHG emissions. The
dashboard can meet this requirement in a simple, cost-effective, low-risk
manner, and provide flexibility as environmental, regulatory, and operating
conditions change in the future.

Transportation Systems• Sales were up 13% compared with the fourth quarter of 2008, due to higher
volumes of turbochargers globally and the favorable impact of foreign
exchange.
• Segment profit was up from $6 million to $72 million and segment margins
increased 670 bps to 7.4% driven by cost savings initiatives, benefits from
prior period restructuring actions, and higher volumes.
• Turbo Technologies was awarded new platform wins with customers including
Ford, Peugeot, Volkswagen, BMW, and Perkins, estimated at approximately $1
billion in revenue over the life of the programs. The platforms span the
European, Asian, and U.S markets for both gasoline and diesel passenger and
commercial vehicle applications and are expected to launch beginning in
2011.
• Honeywell continues to benefit from a high win-rate on attractive new turbo
gas and turbo diesel platforms in 2010. The company unveiled its groundbreaking
3.5L EcoBoost on the Lincoln MKS, MKT, and Ford Taurus SHO, as well as the VNT™
DualBoost turbocharger on Ford's F350 all-new 6.7-Liter V-8 Power Stroke diesel
engine.

Specialty Materials• Sales were down 5% compared with the fourth quarter of 2008, resulting
from lower volumes and the unfavorable impact of pass-through raw material
price declines at our Resins and Chemicals business, partially offset by higher
petrochemical catalyst sales and modest market recovery and inventory
restocking within our Electronic Materials business.
• Segment profit was up 56% and segment margins increased 670 bps to 17.0% due
to lower material costs, pricing initiatives, and cost savings
initiatives.
• Specialty Materials announced it will establish a new 400,000 square-foot
Technology Center in Gurgaon, India, to expand its global research capabilities
in refining, petrochemical, and other technologies to better serve customers in
the region. The center will open later this year and will house pilot plants
for developing and demonstrating refining and petrochemical process technology
developed by Honeywell’s UOP business, and process and applications development
for fluorine products and nylon materials.
• Honeywell’s UOP signed an agreement with China National Petroleum Corp. to
collaborate on a range of biofuel technologies and projects in China. The two
companies will collaborate to demonstrate existing biofuel technology to
produce green transportation fuels using feedstocks available within
China.

Honeywell will discuss its results during its investor conference call today
starting at 8:00 a.m. EST. To participate, please dial (719) 325-4921 a few
minutes before the 8:00 a.m. start. Please mention to the operator that you are
dialing in for Honeywell's investor conference call. The live webcast of the
investor call will be available through the “Investor Relations” section of the
company's Website (http://www.honeywell.com/investor).
Investors can access a replay of the conference call from 11:00 a.m. EST,
January 29, until midnight, February 5, by dialing (719) 457-0820. The access
code is 6436779.

Honeywell (www.honeywell.com) is a
Fortune 100 diversified technology and manufacturing leader, serving customers
worldwide with aerospace products and services; control technologies for
buildings, homes, and industry; automotive products; turbochargers; and
specialty materials. Based in Morris Township, N.J., Honeywell’s shares are
traded on the New York, London, and Chicago Stock Exchanges. For more news and
information on Honeywell, please visit www.honeywellnow.com.

This release contains certain statements that may be deemed “forward-looking
statements” within the meaning of Section 21E of the Securities Exchange Act of
1934. All statements, other than statements of historical fact, that address
activities, events or developments that we or our management intends, expects,
projects, believes or anticipates will or may occur in the future are
forward-looking statements. Such statements are based upon certain assumptions
and assessments made by our management in light of their experience and their
perception of historical trends, current economic and industry conditions,
expected future developments and other factors they believe to be appropriate.
The forward-looking statements included in this release are also subject to a
number of material risks and uncertainties, including but not limited to
economic, competitive, governmental, and technological factors affecting our
operations, markets, products, services and prices. Such forward-looking
statements are not guarantees of future performance, and actual results,
developments and business decisions may differ from those envisaged by such
forward-looking statements.